Nio Confirms Onvo Brand and Set May Launch Date.
Nio (NYSE: NIO) has officially announced the Chinese name for its forthcoming mass-market brand, codenamed Alps, as Ledao (乐道), and its English counterpart as Onvo. The company revealed this information during a media Q&A session following the unveiling of its long-life battery strategy in Beijing. The anticipated launch for the Onvo brand is scheduled for early to mid-May.
The name ‘Onvo’ gained traction after leaked spy photos of the Onvo L60 model surfaced on Chinese social media platforms. Although the quality of the images was subpar, Nio’s founder, chairman, and CEO, William Li, assured that the actual design of the Onvo model is aesthetically pleasing.
Explaining the significance of the Chinese name, Li reiterated that Onvo aims to cater to family-oriented consumers, prioritizing happiness and cost-effectiveness in household management.
Li emphasized that Onvo is positioned as a brand for the mass market, distinct from low- to mid-range offerings. He suggested that consumers eyeing a Tesla (NASDAQ: TSLA) Model Y might find Onvo’s debut model a compelling alternative, promising features like battery swap compatibility, faster charging, and a larger screen at a competitive price point.
The debut of the Onvo brand is slated for the second quarter, with the first product expected to launch in the third quarter and mass deliveries commencing in the fourth quarter. Li mentioned during an analyst call following Nio’s fourth-quarter 2023 earnings announcement that the initial Onvo model will directly rival the Model Y, boasting a bill of materials cost approximately 10 percent lower than Tesla’s offering.
Market expectations anticipate Onvo’s debut model to be priced in the range of 200,000 to 300,000 yuan ($27,800 to $41,700), offering consumers a compelling value proposition compared to Tesla’s current offerings in China.
